Optimal Renko Bars
Optimal Renko Bars
If you’ve traded with renko bars in the past, you know their unique ability to filter market noise.
But
you soon discover that the
best brick size for your market changes
from session to session, even hour to hour.
What worked beautifully in yesterday’s trend move finds you stuck in a tight cyclical market today with few opportunities, and poor risk-reward. This can mean either standing aside completely, or taking low quality trades. Frustrating.
One approach to overcome this has been to take a percentage of yesterday’s Average True Range (ATR), say 10%, and use that for the today’s brick size. There are three problems with this approach:
- The percentage applied is arbitrary
- It is still essentially fixed; it doesn't adapt to today's market
- It doesn’t tell you what the best bar size actually was
The challenge of renko bars
If you’ve traded with renko bars in the past, you know their unique ability to filter market noise.
But you soon discover that the best brick size for your market changes from session to session, even hour to hour.
What worked beautifully in yesterday’s trend move finds you stuck in a tight cyclical market today with few opportunities, and poor risk-reward. This can mean either standing aside completely, or taking low quality trades. Frustrating.
One approach to overcome this has been to take a percentage of yesterday’s Average True Range (ATR), say 10%, and use that for the today’s brick size. There are three problems with this approach:
The percentage applied is arbitrary
It is still essentially fixed; it doesn't adapt to today's market
It doesn’t tell you what the best bar size actually was
Our solution
At Optimal Renko we believe that asking better questions yields more insightful answers.
Rather than accepting standardized charting models, we sought an answer to the following:
1. Which bars give the smoothest chart?
2. Which bars yield the best trading opportunities?
The objective? To build a bar type that adapts to what is happening now, not yesterday.
Our solution
At
Opimal Ninja we believe that asking better questions yields more insightful answers.
Rather than accepting standardized charting models, we sought an answer to the following:
1. Which bars give the smoothest chart?
2. Which bars yield the best trading opportunities?
The objective? To build a bar type that adapts to what is happening now, not yesterday.
No repainting. Historical bars match real time.
With real, not synthetic, opens for greater confidence in back-testing.
Logic meets opportunity
Our proprietary algorithm analyses and weights key metrics of market session behaviour and then checks that there is likely to be sufficient intraday trading opportunity before it selects the ideal bar. In this way, bar-size selection combines science with practicality.
Choose Swing or Scalp Mode
Set the bars to the mode that fits your trading style and personality. Use Swing Mode
for larger intraday moves or Scalp Mode
for faster setups. Or use both, side by side! Both modes employ the same noise filtering technology, attuned to different time-frames, so you're never short of trading opportunities in a session.
Using
Optimal Renko Bars
you can be assured that the cognitive bias inherent in manually choosing a renko brick size is removed from your charts, and that you are viewing your market in a way not common to other participants.
Still using fixed brick sizes? See what smart-sizing can do!
Take a look at how our intelligent bar-sizing algorithm helped with trading gold futures.
If you were using the popular brick size of 10 ticks, you’d have to fight your way through a forest of reversal bars to stay long through the first blue section. Not so with Optimal Renko. Being able to compute the best-fit bars as the session unfolds, the logic auto-selected a brick size of 14, making it much easier to stay on-trend. In the second uptrend, the logic switches to a bar size of 13, ensuring no reversal bars at all on that 7 bar move.
Previously, this ‘best’ brick size could only be found in hindsight. Now you can apply it straight onto your chart, as it happens.
How about this session in crude oil?
Optimal Renko Bars
easily beat a fixed setting of 10 in this session of CL. Our software removed the many extraneous reversal bars on the chart to keep you on-trend. Hold open trades longer, reduce costly re-entries.
Smart | Adaptive | Real time
Logic meets opportunity
Our proprietary algorithm analyses and weights key metrics of market session behaviour, and then checks that there is likely to be sufficient intraday trading opportunity before it selects the ideal bar. In this way, bar-size selection combines science with practicality.
Using
Optimal Renko Bars
you can be assured that the cognitive bias inherent in manually choosing a renko brick size is removed from your charts, and that you are viewing your market in a way not common to other participants.
Choose between Swing Mode or Scalp Mode
Set the bars to the mode that fits your trading style and personality. Use Swing Mode
for larger intraday moves or Scalp Mode
for faster setups. Or use both, side by side! Both modes employ the same noise filtering technology, attuned to different time-frames, so you're never short of trading opportunities in a session.
Still using fixed brick sizes? See the power of smart-sizing!
Take a look at how our intelligent bar-sizing algorithm helped with trading gold futures.
If you were using the popular brick size of 10 ticks, you’d have to fight your way through a forest of reversal bars to stay long through the first blue section. Not so with Optimal Renko Bars. Being able to compute the best-fit bars as the session unfolds, the logic auto-selected a brick size of 14, making it much easier to stay on-trend. In the second uptrend, the logic switched to a bar size of 13, ensuring no reversal bars at all on that 7 bar move.
Previously, this ‘best’ brick size could only be found in hindsight. Now you can apply it straight onto your chart, as it happens.
How about this session in crude oil ?
Optimal Renko
Bars
easily beat a fixed setting of 10 in this session of CL. Our software removed the many extraneous reversal bars on the chart to keep you on-trend. Hold open trades longer, reduce costly re-entries.
Risk Disclosure –Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial
investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.
Trademarked Materials – “NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.”
Testimonials – Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
Risk Disclosure –Futures and forex trading contains substantial risk and is not for every investor. An investor could potentially lose all or more than the initial
investment. Risk capital is money that can be lost without jeopardizing one's financial security or lifestyle. Only risk capital should be used for trading and only those with sufficient risk capital should consider trading. Past performance is not necessarily indicative of future results.
Hypothetical performance results have many inherent limitations, some of which are described below. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown; in fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. One of the limitations of hypothetical performance results is that they are generally prepared with the benefit of hindsight. In addition, hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk of actual trading. for example, the ability to withstand losses or to adhere to a particular trading program in spite of trading losses are material points which can also adversely affect actual trading results.
Trademarked Materials – “NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.”
Testimonials – Testimonials appearing on this website may not be representative of other clients or customers and is not a guarantee of future performance or success.
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